This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
This page explains how to make different presentations of scenario and sensitivity analysis using tornado diagrams, spider diagrams and other tools. The process involves using a combination of data tables and the index function. The process is helped with the TRANSPOSE function. A tornado diagram can be a good risk tool because it shows the importance of different variables and it demonstrates whether there is more downside or upside risk. A spider diagram can be used when sensitivity variables are expressed as percentages (e.g.120% or 90%). Then a two way data table can be used with the percentages and the various different input variables. In creating a tornado diagram you need add a whole bunch of scenarios where each sensitivity has only variables that differ from the base case.
This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
This page explains how to make different presentations of scenario and sensitivity analysis using tornado diagrams, spider diagrams and other tools. The process involves using a combination of data tables and the index function. The process is helped with the TRANSPOSE function. A tornado diagram can be a good risk tool because it shows the importance of different variables and it demonstrates whether there is more downside or upside risk. A spider diagram can be used when sensitivity variables are expressed as percentages (e.g.120% or 90%). Then a two way data table can be used with the percentages and the various different input variables. In creating a tornado diagram you need add a whole bunch of scenarios where each sensitivity has only variables that differ from the base case.
The video below illustrates the process